A New York court has said that an appraisal-related suit involving First American Corp. and its former eAppraiseIT LLC unit, now a part of CoreLogic, can move forward, ruling against a jurisdictional challenge.
The companies had attempted to have the case filed by then-Attorney General and current Gov. Andrew Cuomo thrown out of the state court system for jurisdictional reasons.
The New York State Court of Appeals, in a 6 to 1 decision, ruled that the AG’s office is not barred by federal law and thus is able to pursue claims alleging fraud and violations of real estate appraisal independence rules.
A statement from CoreLogic said, “CoreLogic is disappointed by the court’s decision, as we believe appraisal management services for federal savings associations was an area of exclusively federal control in 2006-2007 and that state agencies may not make the claims asserted in the complaint.
“We note that this decision only concerned jurisdiction, and the court made no determination regarding the merits of the Attorney General’s claims. CoreLogic looks forward to being fully vindicated when this case is ultimately tried.
“We also note that, after four years of investigation and discovery, the Attorney General recently dropped all damages claims against eAppraiselT and First American/CoreLogic, thereby conceding that no consumers were harmed by any conduct of eAppraiselT or First American/CoreLogic.”
First American had not responded to a request for comment at press time.
The case involves work done by eAppraiseIT for Washington Mutual, and allegations that WaMu pressured the appraisal management company to come back with inflated valuations.
Daily Briefing | Wednesday, November 23, 2011
PMI Files for Chapter 11 Bankruptcy
The PMI Group Inc., Walnut Creek, Calif., has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
Conforming Loan Limits Rising in Only One County in 2012
Only one county in the countryFairfield, Conn.will have a higher conforming loan limit in 2012. The ceiling in the other 3,200-plus counties will remain unchanged.
30-Year Rate Slips Below 4% Again
The average weekly rate for a 30-year loan slipped slightly below 4% and rates for adjustable-rate mortgages averaged new record lows in Freddie Mac’s survey Wednesday.
Freddie Reports Higher Refis Delinquencies
Freddie Mac reported a 24% jump in refinancings from September to October while total loan volume rose by less than 4%.
Massachusetts Foreclosure Activity Reverses Yearlong Trend
After more than a year of declines, foreclosure activity rose in Massachusetts in October, according to the Boston-based real estate data publisher The Warren Group.
FHFA, GSEs: Dec. 1 UCDP Deadline Will Be Enforced
The government-sponsored enterprises’ Uniform Mortgage Data Program has been marred with delays and setbacks since the earliest steps began at Fannie Mae two-and-a-half years ago with the precursor to the Uniform Collateral Data Portal, the technology platform that will accept full electronic appraisal reports in a new XML-formatted data file.
Purchase Apps Up But Refinancings Sink
Application volume fell by 1.2% on a seasonally adjusted basis for the week ended Nov. 18, as purchase apps were up to their highest level since August, but refinancings were down to their lowest point since July, according to the Mortgage Bankers Association. The data for the previous week (Nov. 11) was adjusted to take into account Veterans Day.
Permits Up Again in California
For the third consecutive month, builders in California pulled an increasing number of permits compared to the previous year.
Lennar Adds to Debt Offer
Lennar Corp. has upsized its senior debt offering to $350 million and priced it at a 3.25% interest rate. It first proposed selling $300 million in debt. The over-allotment for the offering was also increased to $50 million from $45 million.